Australia and Japan sign agreements on energy and critical minerals

SYDNEY – Australia and Japan agreed on May 4 to deepen cooperation on energy and critical minerals, as Japanese Prime Minister Sanae Takaichi met Australian counterpart Anthony Albanese during a three-day visit to the country.

After signing a landmark defence deal in April, the two nations agreed to strengthen energy, food and critical minerals supply chains.

“Australia and Japan are taking action to protect our economies from future economic shocks and uncertainty,” Mr Albanese said in a statement.

“By working together, we will achieve more secure and resilient supply chains that will benefit Australian and Japanese businesses and consumers now and into the future.”

Australia provides approximately one-third of Japan’s energy supply, and is the country’s largest market for liquefied natural gas (LNG).

Both nations have been attempting to shore up energy supply as tensions in the Middle East strangle trade. Japanese firms have also been closely watching developments in the Australian LNG industry, from the risk of strikes at a major gas facility and rising political pressure to increase taxes on exports.

“Like Japan, we are very concerned by disruptions to the supply of liquid fuels and refined petroleum products,” Mr Albanese said on May 4.

Australia also plans to provide support of up to A$1.3 billion (S$1.2 billion) to critical mineral projects with Japanese involvement, creating the potential to supply Japan with resources, including gallium, nickel, graphite, rare earths and fluorite.

Ms Takaichi arrived in Australia from Vietnam, where she discussed energy and critical minerals and urged South-east Asian nations to bolster regional supply chains.

In April, Japan signed contracts launching a A$10 billion deal to supply Australia ​with warships in Tokyo’s most significant military sale since ‌ending a ban on such exports in 2014. REUTERS